Cyprus to come up with a 'Plan B'

http://www.guardian.co.uk/world/2013/mar/21/cyprus-crisis-race-agree-plan-b

This situation gets increasingly complex with Cyprus rejecting the tax levy and proposing a 'restructuring' of Laiki protecting those with deposits under 100k, but it is still not obvious how exactly it is going to pay off its debts as the Monday deadline looms. I suspect that it will have to eventually agree to the terms proposed by the ECB given Russia's unwillingness to purchase Cyprus' two largest banks.

Reply 1

Bart1331

Here's a really weird idea - Seeing as the EU preaches "democracy" and "listen to the will of the people", how about they actually listen to the people of Cyprus?

NONE of the elected parliament voted in favour of the "tax", and a vast majority of the public are opposed to it. Seems pretty clear to me - Anyone that claims to believe in democracy will not try and force this on Cyprus when the will of the people is CLEARLY against it.

Reply 2

CEKTOP

Original post by Bart1331

They do not actually try to 'force this on Cyprus' but you have to realise that the Cyprus Parliament can vote against anything but these votes will not raise them the money they desperately need to avoid a default.
This has nothing to do with democracy and everything to do with Cyprus being a corrupt and mismanaged money-laundering state that has been trying to postpone the inevitable for months.

Reply 3

Bart1331

Original post by CEKTOP

They do not actually try to 'force this on Cyprus' but you have to realise that the Cyprus Parliament can vote against anything but these votes will not raise them the money they desperately need to avoid a default.

Sure - But the EU preaches so much about democracy, yet they seem to be insisting that Cyprus passes that bill, even though the people of Cyprus have clearly said no.

So if the EU believed in democracy, they would not be attempting to force this bill.

It's not a "tax", because they ALREADY pay tax. It's theft. The people who saved money aren't to blame for anything, so why are they the ones who are at risk of having their earnings stolen?

Reply 4

CEKTOP

Original post by Bart1331

Sure - But the EU preaches so much about democracy, yet they seem to be insisting that Cyprus passes that bill, even though the people of Cyprus have clearly said no.

So if the EU believed in democracy, they would not be attempting to force this bill.

It's not a "tax", because they ALREADY pay tax. It's theft. The people who saved money aren't to blame for anything, so why are they the ones who are at risk of having their earnings stolen?

The EU is merely protecting itself as Cyprus's collapse will have a direct negative impact on the Eurozone, once again, it does not try to force it, the deadline is here and Cyprus has no plans whatsoever, the ECB worked out a plan for Cyprus. If Cyprus fails to secure the required amount it will likely default and get kicked out of the Euro, its banking sector and its economy will be in shambles.

For Cyprus a levy is the only way to raise money without getting itself indebted even further as its system is clearly dysfunctional.

Reply 5

Bart1331

Original post by CEKTOP

For Cyprus a levy is the only way to raise money without getting itself indebted even further as its system is clearly dysfunctional.

Well both the people, and the parliament elected by the people, have rejected this levy. So clearly it should not go ahead.

Reply 6

CEKTOP

Original post by Bart1331

Well both the people, and the parliament elected by the people, have rejected this levy. So clearly it should not go ahead.

Now lots of them risk losing everything, that is a very real possibility.

Reply 7

Bart1331

Original post by CEKTOP

Now lots of them risk losing everything, that is a very real possibility.

The customers? Well I guess if the bank took a gamble with their money, they should reimburse them if the gamble didn't pay off.

(edited 11 years ago)

Reply 8

CEKTOP

Original post by Bart1331

The customers? Well I guess if the bank took a gamble with their money, they should reimburse them if the gamble didn't pay off.

Bankrupt institutions do not reimburse anything, that's the point of becoming bankrupt.

Reply 9

Bart1331

Original post by CEKTOP

Bankrupt institutions do not reimburse anything, that's the point of becoming bankrupt.

The wealth of the people who took a risk with their customers money would go some way in reimbursing them I imagine.

Reply 10

Ruffiio

They look screwed either way to me. If they don't steal everyone's money their screwed and if they do the public will get angry and they will be screwed.

Reply 11

Plainview

It matters little. If you woke up tomorrow to find that the government had implemented the same 'tax', went down to the cashpoint to no avail, and had to sit out the wait until the banks reopened after whatever sort of agreement had been reached, what would be the first thing that you'd do? Remove your money anyway – I can't imagine anyone in Cyprus wanting to trust the banks with their money after this, whatever the outcome. I think the damage has already been done.